SHOUGANG CENT (00103.HK): Signs Cooperation Letter of Intent with Beauty Realm Capital, Plans Joint Venture to Expand Global Industrial Rayon Market
NewTimeSpace News: On 17 August 2026, Shougang Century Holdings Limited (stock code: 00103) announced that it had recently entered into a cooperation letter of intent with Beauty Realm Capital (Beauty Realm European M&A Fund (Phase I) Limited), pursuant to which the parties initially propose to jointly establish a joint venture, aiming to achieve complementary advantages and synergy in the tyre reinforcement materials sector and jointly expand the global industrial rayon products market. To the best of the directors' knowledge after making all reasonable enquiries, Beauty Realm Capital and its ultimate beneficial owner are third parties independent of the company and its connected persons.
Beauty Realm Capital is the controlling shareholder of Cordenka GmbH & Co. KG (Cordenka), a German company and a globally leading producer of industrial rayon, a high-performance tyre carcass reinforcement material. The group has long been dedicated to the steel cord sector and, like Cordenka, is a major supplier of tyre reinforcement materials, with highly overlapping customer bases and notable business complementarity. Upon the establishment of the joint venture, the parties will integrate product lines and customer resources to further enhance their voice and brand influence in the global tyre supply chain.
The parties are also highly aligned on sustainable development. The group continues to increase the share of super tensile (ST) and ultra tensile (UT) steel cord products, with a new generation of mega tensile (MT) products gradually being introduced to the market, and has achieved mass supply of products with a recyclable steel ratio exceeding 70%. Cordenka's industrial rayon is produced from wood pulp, with a carbon footprint lower than traditional petrochemical materials, fitting the low-carbon circularity needs of vehicle manufacturers and tyre makers. The cooperation will further promote synergistic improvement between the parties in sustainable development.
Apart from provisions relating to confidentiality, governing law, dispute resolution and legal validity, the terms of the cooperation letter of intent are not legally binding, and the proposed cooperation is subject to further negotiation and the execution of a formal agreement. As of the date of this announcement, no legally binding agreement has been entered into; should the proposed transactions be materialised, the company will publish further announcements in due course in accordance with the Listing Rules.
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